Tuesday, March 1, 2011 – 01:35 p.m.
Inflation is definitely back in the game.
Gold closed at an all-time high of $1,432.60 an ounce Tuesday afternoon.
West Texas Intermediate Light Sweet Crude broke the $100 per barrel threshold, closing at $100.40.
Increasing instability in the Middle East is the main contributing factor.
Expect the effects of rising inflation to put the brakes on the U.S. economy, government budgets and pension fund asets, worse than many expect.
The Dow Jones and S&P 500 skidded on the development, falling 168.32 points (-1.38%) and 20.89 points (-1.57%) respectively.